Ex-chair Matodzi implicates Malema, Shivambu in dodgy dealings with VBS Mutual Bank

JOHANNESBURG - An affidavit made by disgraced former VBS Mutual Bank chairman has implicated Economic Freedom Fighters (EFF) leaders Julius Malema and Floyd Shivambu in dealings with the now-defunct bank and the receipt of millions from its accounts.

In an elaborate affidavit, Tshifhiwa Matodzi details the corruption and looting of over R2.2 billion from the bank that led to its collapse.

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He was sentenced to 15 years imprisonment this week for multiple counts of racketeering, theft, fraud and money laundering.

This sentence was reduced from 495 years after he struck a deal with the State.

In his affidavit, Matodzi details how his relationship with the EFF was formed after the party criticised the bank for granting a home loan to former president Jacob Zuma for his Nkandla residence, something the EFF would publicly bash the bank for.

Matodzi said he decided to meet Malema and Shivambu at the EFF’s penthouse in Sandton, where it was agreed that the bank would donate R5 million to the red berets.

He said the deposit was made to an account named Sgameka, a company owned by Shivambu’s brother, Brian, and further payments would be made to the same account.

Matodzi said he, Malema and Shivambu understood the donations to be gratifications that would later have to be regularised through the drafting of a bogus contract for work in petroleum and storage facilities.

Malema has previously denied meeting Matodzi beyond a brief exchange at a party.

He has also denied having any dealings with the bank.